A UK communications company has vowed to try again after a rocket carrying the first of its planned $1bn constellation of mobile satellites failed to launch properly.

The second stage of the Ukrainian-made Zenit-3 SL rocket failed to fire, sending its pay-load crashing back to earth.

The satellite is insured so it will have no financial impact

Michael Johnson of ICO Global Communications

Michael Johnson, head of corporate communications at London-based ICO Global Communications, was philosophical about the failure.

"We are disappointed but the fact is this failure will have no impact on our business because we had always planned (to send up) 12 satellites of which two were spare," he told BBC News Online.

He insisted they would be able to pick up the pieces and start again.

"The satellite is insured so it will have no financial impact," he said.

Asked when another attempt to launch the rocket would be made, Mr Johnson replied: "As soon as we can get it organised. It'll certainly be this year."

Sea Launch, the company which launched the rocket from a platform in the Pacific Ocean, says it lost communications with the craft a few minutes after take-off at 1439 GMT.

The satellite network should provide global net access

The Sea Launch platform is being operated jointly by the United States, Russia, Norway and Ukraine.

The lost satellite was built by the US Hughes Space and Communications Company.

The first Sea Launch mission last October did not suffer any technical problems.

A separate launch on Sunday of a Proton rocket from the Baikonur space base in Kazakhstan was a success.

Platform

The Zenit rocket used a refitted North Sea oil rig as a platform for blasting satellites into space.

Sea Launch Commander

New vessel built at Govan, Scotland

Floating rocket assembly factory in port

Mission control facility at sea

200m (660ft) long, 32 (106) wide

By positioning the rig on the equator in the Pacific Ocean, Sea Launch could harness the full 1,600km/h (1000mph) rotation of the Earth to help propel a rocket into space.

This reduces the amount of energy required to put the vehicle into orbit and lowers costs.

ICO is aiming for full commercial operation with all 12 satellites by the autumn of 2002. The satellites will be controlled from ICO's centre at Uxbridge, near London.

The rig was refitted in Norway

Rob Taylor, of ICO told BBC News Online: "The constellation will provide global mobile communications for data and voice. You'll be able to seamlessly communicate wherever you are in the world, however remote.

"There are lots of places around the world where people and businesses don't have the e-mail, fax and internet access that we take for granted."The initial data transfer rates will be 140kbps, with the potential for upgrades to 384kbps.

ICO was rescued last year from financial trouble by Craig McCaw, founder of Teledesic. The company had already spent $3.1bn and Mr McCaw has pledged another $1.2bn.

However, a further $2.1bn will need to be raised for commercial services to be implemented.